SEBI Launches IT Resilience Index for Market Infrastructure

The Securities and Exchange Board of India (Sebi) has introduced a comprehensive framework designed to enhance the resilience, reliability, and cybersecurity of information technology systems within Market Infrastructure Institutions (MIIs).

This initiative targets critical entities like stock exchanges, clearing corporations, and depositories, aiming to preempt disruptions that could erode investor confidence and impact essential market operations.

Bolstering IT Infrastructure

Sebi’s framework mandates MIIs to ensure the consistent availability, reliability, performance, and cyber resilience of their IT infrastructure.

This is achieved through robust governance protocols, proactive monitoring, and the implementation of timely corrective measures when necessary.

The IT Resilience Index Explained

A central element of this new framework is the IT Resilience Index (ITRI), which will systematically assess the robustness of critical IT systems.

This includes systems identified in Sebi’s master circulars, along with other related IT infrastructure.

Key steps in the ITRI’s implementation include:

• The Industry Standards Forum (ISF) of MIIs will finalize ITRI sub-parameters, measurement criteria, baseline parameters, acceptable threshold scores, and standard operating procedures (SOPs).
• This finalization must be completed by November 30, 2026.
• MIIs are required to calculate the ITRI every six months using an automated, system-driven methodology.
• Rolling comparisons and proposed corrective actions must be submitted to their Standing Committee on Technology (SCOT) and governing boards.

New Monitoring Systems and Deadlines

Beyond the ITRI, the framework also necessitates the establishment of an Early Warning System to detect any deterioration in ITRI parameters.

It also mandates systems for continuous, real-time monitoring of service delivery to market participants, including consolidated dashboards.

The operational timeline for these new components is structured as follows:

• A beta version of the ITRI framework is already in place.
• The full framework, encompassing the Early Warning System and real-time monitoring, must be operational by February 28, 2027.
• Detailed SOPs related to these systems are due to Sebi by January 31, 2027.
• The first official ITRI submission under the new framework is scheduled for the half-year ending March 31, 2027.

These measures underscore Sebi’s commitment to maintaining a secure and reliable technological backbone for India’s securities market, crucial for investor protection and market integrity.